Sunoco Marketing Mix

Sunoco offers a dual fuel supply strategy, providing both its own branded gasoline and unbranded fuel options to its extensive network. This approach effectively broadens their customer base, appealing to consumers who value the established Sunoco brand, especially in retail environments, and also to those seeking the adaptability and cost efficiencies of unbranded fuel. In 2024, Sunoco's branded stations continued to leverage their strong market presence, with brand recognition being a key driver for customer loyalty.

The Sunoco branded fuel itself is a significant differentiator, distinguished by its advanced high detergent blend. This formulation ensures engine cleanliness and optimal performance, aligning with and exceeding the rigorous standards set by the TOP TIER™ Detergent Gasoline Program. This commitment to quality, evidenced by their adherence to TOP TIER standards, underpins the value proposition for both consumers and station operators who choose the Sunoco brand.

Sunoco LP's product offering centers on the wholesale distribution of gasoline and diesel fuel, serving a vast network of convenience stores and independent gas stations. Their branded fuel, featuring an advanced high-detergent blend that meets TOP TIER standards, differentiates them in the market.

Beyond fuel, Sunoco LP leverages its extensive midstream infrastructure, including approximately 14,000 miles of pipelines, to transport refined products, crude oil, and ammonia, generating stable, fee-based revenue. In 2023, the refined products segment alone contributed around $22.7 billion to their total revenue of $24.1 billion.

The company also provides comprehensive support to its dealer network, including marketing assistance and loyalty programs like Sunoco Go Rewards, aiming to enhance dealer profitability and customer retention. This support extends to facilitating sales of specialized products like Sunoco Race Fuel.

Sunoco LP operates a dual retail strategy, managing both company-owned and franchised fuel stations under the Sunoco and APlus brands. This approach allows for direct consumer engagement and strengthens brand visibility across various markets. As of early 2024, the company directly managed 75 retail outlets, demonstrating a tangible presence in the consumer fuel market.

Sunoco's place strategy centers on its vast distribution network, encompassing approximately 7,400 Sunoco and partner-branded locations across over 40 U.S. states, Puerto Rico, Europe, and Mexico. This expansive reach is further supported by over 100 refined product terminals, strategically positioned for efficient storage and distribution, with recent European acquisitions enhancing this capability. The company also maintains a direct presence with 75 company-managed retail outlets as of early 2024, complementing its franchised locations.

Sunoco's promotion strategy heavily emphasizes building robust business-to-business (B2B) relationships. This involves cultivating strong ties with independent dealers, convenience store operators, and various commercial clients who are crucial to their wholesale operations.

To support these B2B partnerships, Sunoco offers comprehensive operational assistance, including access to effective marketing tools and adaptable supply agreements. These offerings are vital for both attracting new wholesale customers and ensuring the loyalty of existing ones.

For instance, in 2023, Sunoco continued to invest in dealer support programs, which are designed to enhance the profitability and operational efficiency of their retail partners. Such initiatives are central to their promotional efforts within the B2B segment, aiming to solidify their market presence through strong channel partnerships.

Sunoco's promotional strategy leverages its strong brand heritage, exemplified by its ongoing role as the Official Fuel of NASCAR® through 2024. This association, coupled with loyalty programs like Go Rewards, drives customer engagement and repeat business, as evidenced by a significant increase in member transactions in 2023. The company also prioritizes B2B relationships, offering dealers marketing tools and operational support, which contributed to a 3% dealer network expansion in 2024.

Sunoco's digital presence, including its investor relations portal, ensures transparency by providing access to 2024 annual reports and 2025 guidance. Furthermore, localized marketing support for its dealer network, including POP materials, has boosted same-station fuel sales by an average of 8% for participating locations in 2024.

Sunoco LP's fee-based terminal and pipeline services are a cornerstone of its midstream strategy, generating predictable revenue. This model shields a significant portion of their income from the wild swings of fuel prices, offering a more stable financial footing. For instance, in the first quarter of 2024, Sunoco reported that its terminal and pipeline segment generated approximately $368 million in operating income, highlighting the reliability of these fee-based services.

Sunoco's wholesale fuel pricing is a dynamic strategy, heavily influenced by global crude oil markets and regional supply-demand. In early 2024, gasoline prices experienced volatility due to geopolitical events and seasonal demand, with Sunoco aiming to offer competitive rates to its extensive dealer network.

The company calibrates its wholesale gasoline and diesel prices against refining costs and competitor pricing to remain attractive. This focus on competitive rates is key to maintaining market share in the fast-paced fuel distribution sector.

Sunoco leverages loyalty programs like Sunoco Go Rewards and its Rewards Credit Card to offer direct price benefits to consumers at the pump. These incentives, often 3¢ or 5¢ off per gallon, are central to their retail pricing, aiming to boost customer acquisition and retention.